Asante Gold Oversubscribes Private Placement

Asante Gold Corporation (CSE:ASE) has received subscriptions for the full $1.25-million working capital unit private placement announced on Sept. 20, 2016. The first tranche of the placement was closed on Oct. 21, 2016. Each unit was priced at 18 cents, and consists of one common share and one-half of a two-year share purchase warrant. Each full warrant is exercisable for one common share at 25 cents. All securities purchased under this offering are subject to a four-month-and-one-day hold period from the date of issuance of the securities. BXC Company (Ghana) Ltd., which has entered into a 50:50 joint venture (JV) with the company to develop the Kubi mining leases in Ghana toward production, subscribed for $700,000 of the units.
Proceeds from the private placement will be used for general working capital, including drilling and other work programs on the company’s Keyhole, Betenase, Fahiakoba and Kubi projects in Ghana. Finders’ fees are payable on a portion of the offering. All securities purchased under this offering will be subject to a four-month-and-one-day hold period.
In addition, the shareholders of the company overwhelmingly approved all of the motions at the annual general meeting held on Dec. 28, 2016, including disinterested shareholder approval for the company to proceed with the acquisition of the Kubi mining leases, and up to eight prospecting licencecs located along strike to the southwest of the Asanko gold mine and adjoining Kubi, from Goknet Mining Company Ltd. of Accra, Ghana. The Kubi acquisition terms were announced on Aug. 9, 2016.
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The approval of the Kubi acquisition allows the company to proceed with closing the BXC Kubi gold mine joint venture. Closing has been extended to Feb. 28, 2017, to allow for certain closing conditions, such as ministerial approval, to be granted.
Ghana completed a peaceful and fair election process in early December, resulting in the election of a pro-business and pro-rule of law government. The new Minister of Lands and Natural Resources is expected to be appointed in the next few weeks. For the full terms of the JV please see the company’s Oct. 17, 2016, news release.
Douglas R. MacQuarrie, president and chief executive officer, states: “We wish all our shareholders, contractors and employees a very healthy, happy and rewarding 2017. With the approval of the Kubi acquisition, the substantial initial investment from BXC and the other placees, and a new business friendly government in Ghana, it appears 2017 will be a special year of growth for the company. We look forward to commencing the surface works at Kubi and aggressive exploration on our other concessions — looking for a new discovery. Thank you for joining with us.”
About Asante Gold
Asante and BXC are proceeding to develop the Kubi gold joint venture as a potential near-term underground mine; and Asante is exploring the Fahiakoba, Keyhole and Betenase options, and other concessions, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.
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